<p>I'm not exactly sure what Juilliard's course covers. I know S2 mentioned contract negotiations for orchestras and such, but I'm not sure how much freelance stuff was covered.</p>
<p>Here is another tax-advice site. This is referring to standard deductions, though. {Bold is added by me}:</p>
<p>
[quote]
If you are a qualified performing artist or other professional, and you paid for job-related expenses out of your own pocket, then you can claim those expenses as a tax deduction. Normally job-related expenses are a miscellaneous itemized tax deduction, subject to the 2% floor. If you qualify, claiming the qualified performing artist deduction will provide a bigger tax break.</p>
<p>Qualifying Professions:
The following professions qualify for the above-the-line deduction of job-related expenses:
Performing artists who worked for two or more employers during the year,
National Guard or Reserve member, or
Fee-based government officials. </p>
<p>Performing Artists:
**You provided services in the performing arts for two or more employers, receiving at least $200 or more in wages from each employer, your job-related expenses are more than 10% of your income from your performing artist jobs, and you have adjusted gross income of $16,000 or less <a href="without%20regard%20to%20this%20deduction">/B</a>. Your filing status cannot be married filing separately.
<p>Hi All. Here's some reading material: IRS Publication 970, "Tax Benefits for Education," discusses the issue beginning on page 59. You can find the publication on the IRS's web site, ww.irs.gov, or you can Google "Publication 970" and it should come up as the first document. </p>
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<p>Do you still claim him as a dependent?>></p>
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<p>Yes...because if we don't claim him as a dependent on our taxes we can NOT keep him on our health insurance plan (something everyone should check if they plan to keep their college kids on the family plan...ours is very specific "dependent children up to age 25"). And yes, we inquired and they said...on the taxes.</p>
<p>Thanks for the tip. Since he files FAFSA independently, I assumed he would be filing taxes independently as well, but I certainly don't want him to lose his insurance! I really don't know how all this works!</p>
<p>Thinking out loud: Do folks who are "married, filing separately" still qualify as dependents for health insurance? I'm not sure I understand the definitions well enough. If my S2 files taxes for self-employment, but doesn't claim himself as a dependent, because he is claimed on ours, does that make him ineligible to claim independence on FAFSA, too? </p>
<p>His income, frankly, isn't going to be that high, and with the new horn as a capital expense, along with various obvious education credits and other expenses, he may not even "need" to claim tuition and such - since we don't think he should claim a loss - yet. </p>
<p>binx, your son now has an undergrad degree, and as such he is independent for FAFSA. That's one of a number of criteria (only need to meet one); others are married, have a dependent, served in the military, there's one or two more.</p>
<p>Even though he's now independent for FAFSA, you can still claim him as a dependent on your taxes. </p>
<p>Regards insurance for married filing seperately, both spouses would be covered if there was only one insurance carrier (that is if the policy (I'm assuming through employment) covers spouses). </p>
<p>Plans for dependent children vary... ours covered kids up to 23 (not 25) if they were still in school; that's why both of mine are carrying their own.</p>
<p>Linde, thanks. I'll just have to reread it again for the umpteenth time. </p>
<p>rcmama, son had a mandatory 1 semester "performance as a career" course at Hartt, which covered auditions, contracts, self marketing and promotion. If it touched at all on taxes, I'd be surprised.</p>
<p>binx, the purchase of a horn and the resulting first year depreciation would be a legitimate reason to have a loss. I definately would consider it.</p>
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<p>If my S2 files taxes for self-employment, but doesn't claim himself as a dependent, because he is claimed on ours, does that make him ineligible to claim independence on FAFSA, too? >></p>
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<p>Dependence for taxes and dependence for financial aid are NOT determined the same way.</p>
<p>Binx..your son (like mine) is an independent for financial aid purposes because he has already completed a bachelors degree...one of the salient questions on the FAFSA to determine whether one is dependent or not for FAFSA purposes.</p>
<p>For tax purposes, if the parents are providing more than 1/2 of the support for the student (not including financial aid given by the colleges), the student CAN still be declared as a dependent on the taxes. Our son also filed his own return...actually has filed his own return for years with self employment income on it. We still declare him as a dependent on our taxes. Actually all that meant this year was that HE didn't get the $300 "incentive" check. But what we got in tuition credit and his deduction FAR exceeded that $300.</p>
<p>Next year, my son will also have a new instrument as an expense for his taxes. This expense will be used when he does his schedule C for his self employed income. He also has earned income from a job....just to confuse things. BUT this earned income actually helped in that taxes and SS tax were taken out of that income so he didn't have to pay it ALL when he filed.</p>
<p>We had a discussion with our accountant in January. I said..gee..I think DS's expenses might exceed his self employed income. My accountant said "not every self employed person turns a profit". So true...and hopefully temporary.</p>
<p>Re: insurance for married students' spouses...you would have to check your plan. Ours will not cover them under our family plan. The spouse isn't OUR dependent.</p>
<p>Violadad...FYI...as of Jan 1 2009 health insurance in CT MUST be provided to dependent children on family plans up to the age of 25 (might actually be 26, but I think it's 25) and they no longer need to be full time students. This is a new law that was enacted. You will need to check this with your carrier, but this is what I was told at an insurance seminar I attended last summer.</p>
<p>DS's masters program has a course sequence about careers in music. DS says it is excellent. In Jan, he suggested to them that they include information about taxes next year in the winter term (as that would be timely)!!</p>
<p>Our insurance handbook does say "dependent children who are full time students up to age 25". But he will NOT be dependent. He will be living on loans and gigs. He is off our payroll. So now I don't know what to think. I'll worry about it tomorrow.</p>
<p>Oh-- and Thumper, I wasn't talking about spouses of dependents. I was simply asking that, if a child needed to be claimed as a dependent for insurance purposes, did a spouse also need to be claimed as a dependent? So, for example, if I file separately from my H, and we each claim our own exemption, then are we considered independent of each other, and therefore wouldn't qualify for insurance coverage from the other's company? Violadad rightly pointed out that insurance docs usually specify "spouse" and not "dependent spouse."</p>
<p>Bumping this topic to ask a related question:
Last year we bought D a new Horn before going to college. As far as her college was concerned this was considered part of her cost of attendance but was not written into her T1098 as a qualified education expense. My impression of a qualified education expense is tuition, fees, and equipment necessary. Wouldn't an instrument be considered equipment in this case if the student is a music major? Has anyone had any experience with this?</p>
<p>I'm not a tax pro, but from what I can gather is that while it may be considered part of COA (and even that will depend on the school), it's not a valid expense for the 1098T. There are a couple of threads in the financial aid forum with links to IRS Pub970 (I think that's the one) that details qualified/unqualified expenses.</p>
<p>If she's got self employment income, you may want to consult a tax pro. There may be a legitimate deduction in that process, but there are caveats and rules. Some of the existing links in this thread may prove helpful, but my tendency is to err on the side of caution when I help son with his taxes. I told him we could tear our hair out together this weekend. </p>
<p>Linde seems knowledgeable and there's always taxguy. You may want to pm either or both.</p>
<p>I'm not a tax pro either...but my kid is always looking for ways to use his "expenses" as deductions. He says that the purchase of an instrument is not considered an educational expense for 1098 T purposes. It is, however, considered an expense for the self employed musician. Your kid would have to be self employed as a musician and complete a schedule C to use this. To be honest, this is probably not something most full time undergrad students will be doing.</p>
<p>We (and I think Binx is in this position too) have a kid who purchased a new instrument in 2008 and that will be something he uses on his schedule C as an expense. BUT this has nothing whatsoever to do with college.</p>
<p>Yep, but both your son and binx's are grad students, with prior Schedule C filing. Plus one is a dependent (yours) and I think binxson is not for tax purposes, nor is mine. So in both your cases here, there is a valid deduction, as they have derived (hopefully) sufficient Schedule C income to justify the deduction. Momof3Star's d is an undergrad, and a dependent, and probably with even less Sch C income than our brood. </p>
<p>Whaddya say thump? binx? Wanna see if we can get the boys a group discount if we found a performing arts accountant?</p>
<p>My son can't afford a tax accountant...even WITH a discount. He freefiles using the irs.gov site. His taxes aren't all that complicated. The most important thing he does (and Binxson and Violason too...I would guess) is keep VERY accurate records of his expenses, and earnings. Because he doesn't always earn $400, he doesn't always get a 1099...but he still has to declare that income. He is very good about keeping excellent records. I think he's going to be just about even for 2008...as he purchased an instrument and had some other "work related" expenses that offset a good chunk of his meager income. Keep your fingers crossed that 2009 is a good year!!!</p>
<p>We are claiming binxson as a dependent. My sister-in-law works for an insurance co and her significant other is a tax guy. They tell us that since we paid more than half his living expenses, he still qualifies as a dependent. Next year might be a different story. (However, she thinks we can still claim him next year, too. We're the official "renters" of his apartment.)</p>
<p>Can't go in with the group this year for the accountant - H's company pays someone to do our taxes. Believe it or not, there are still ramifications from when we lived in Germany, and as long as those are there, the company does the taxes.</p>
<p>Wish they would do S's taxes. It's a pain having to figure out all the different state taxes from wherever he gigged. Don't know how many this year - maybe only NY, NJ, and SC. Don't think he had any in GA.</p>
<p>As to the question about the instrument - I don't think we've ever been able to deduct any educational expenses except loan interest, but in general, large expenses like that can only be taken depreciated over a number of years, not all at once.</p>
<p>DS is a dependent for taxes on 2008 taxes...last time. We are paying well over half of his expenses (including rent, utilities, food and a small portion of his tuition). </p>
<p>The instrument can be declared as a purchase in one year for self employed ONLY. That is the only way it is not just depreciated value over a number of years.</p>
<p>Oh darn, I was hoping. That would have been a nice deduction for us. Since D is at a public Uni her scholarship from the school plus outside scholarships put her over the tuition and expenses and helped with room and board so we have taxable income there. However, I need to double check if the school included her book expenses and also she had to buy a couple hundred dollars worth of music books and supplies at the request of her studio professor before school started so I would assume that would also factor in. </p>
<p>I will be happy when tax time is OVER! My DH is self employed so I thought that was all we had to think about but I guess not!</p>
<p>musicmom...that is exactly what my son does...freefile...and does that schedule C. He did it last year and will do it next week for 2008. He said it was very straight forward AND easy.</p>
<p>I did a quick computer search and found nothing directly on point. The issue sis whether the cost or expense is <em>required</em> in order for the student to attend the program. The schools must take the position that an instrument, or perhaps more specifically, a new instrument, is not required. Expected, perhaps. Suggested, perhaps. But, if not required, then it doesn't count. If I had more time, I would look for treatment of costs in other types of programs to see if there is an argument by analogy but I don't have that info or much time at the moment.</p>